Not-for-profit superannuation fund First State Super is creating the largest member-owned financial planning network in Australia after winning an auction to acquire the NSW government’s StatePlus.
The combination of First State Super Financial Services and StatePlus will have $21 billion in retirement funds and more than 200 financial planners in 25 offices in metropolitan and regional centres.
The deal expands First State Super, with its 80% public servant membership, outside its traditional base of NSW and Victoria.
The sale price of StatePlus hasn’t yet been revealed.
However, the combined businesses sets First State Super up for a possible ASX float. According to Street Talk in the Australian Financial Review, Macquarie Capital and Morgan Stanley are preparing an IPO of about $820 million.
“Together we will create a financial advice service that builds on the strengths of both organisations,” says CEO Michael Dwyer.
“We will leverage our increased scale to maximise retirement income for our members.
“For now it is business as usual for both operations. First State Super Financial Services and StatePlus will continue to operate as separate and distinct businesses while we develop our plans for the future.
“We want to fully understand the unique opportunities that this acquisition presents for both organisations and the members and clients we serve.”
First State Super is one of Australia’s largest superannuation funds with $54 billion in funds under management and more than 756,000 members.
StatePlus, formerly State Super Financial Services, was established to provide financial advice to public sector employees.